The stunning rise of Internet company stocks is sometimes followed by equally stunning drops. That’s the case with the formerly high-flying DrKoop.com, which went public with such hype and is, according to auditors, in danger of running out of money (CBS Marketwatch).
Even if DrKoop.com makes it through its troubles, as the company says it will, I suspect we’re about to see a slew of flame-outs in the Internet business. It’s about time, actually, for some reality to intrude into the fantasyland that has attracted so many dollars from so many small investors who stand to lose big when reality strikes.
For a worthwhile take on the situation, here’s Floyd Norris’ column in today’s New York Times (free registration required): Modigliani’s Message: It’s a Bubble, and Bubbles Will Burst.
Patents, Patents, Patents
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